what about credit card debt?

Let me take a shot at this, ok?

Visa is international, but the bank who granted you the credit and approved you for the card is the creditor to whom you are indebted. They might or might not chase you all over the world for the debt. It depends on on a number of things, including which bank it is, the amount you owe, the likelihood of recovery and the ease with which they can find and prosecute you.

Some of the same rules apply, some don't. A bankruptcy, for example, if legitimate, definitely covers a credit card debt. The statutes of limitations are clear on consumer debt (6 years minus 1 day).

On the other hand, the guidelines for suing are different. A bank can sue the moment the card is defaulted if they wish. Their internal policies are what makes the determination. Banks aren't precluded from suing just because you make small payments.

There is nothing to fear as far as jail or similar penalties are concerned. The only time you run that kind of risk is if you tork(Johnny?) off a judge and he cites you with contempt of court. Then you risk being penalized for something other than the debt.

As for the moral issues.

I have argued elsewhere that there is no moral component to a business debt. It's money, it's a loan, it's business. I have also pointed out that corporations routinely restructure or avoid obligations entirely when circumstances change and that the corporate CEOs don't lose sleep over it. Nor would they permit their families to go without food shelter, clothing and some degree of luxury in order to satisfy a purely fiscal responsibility.

That, however, is far from recommending that we intentionally borrow money (as a student loan OR a credit card debt) and then choose not to repay it because we found a way to beat the system. That's fraud, of course, and immoral in my view.

If you are UNABLE to pay a debt because circumstances beyond your control preclude your honouring your obligations, it is reasonable to restructure or seek other remedies like bankruptcy. It is NOT reasonable to put yourself or your family through a lifetime of misery to meet unreasonable or impossible demands. If the demands include that undue suffering be required of your family or you, the demands are unreasonable.

That doesn't mean that you shouldn't make some sacrifices to live up to your promises, but it does mean that you and your children should not go without food, medicine, clothing, shelter, and some level of comfort to make the payments.

But one thing I personally would never do is use companies like Enron or individuals like dear old Martha as my moral guideposts. To me that's like arguing that murder is okay, because it was okay for dear old Adolph or Charlie Manson. I would hope that we have a greater level of integrity and self respect than to model our behaviour on the very worst of society or even to use their actions as justifications for our own crappy behaviour.